5 Things Investors Look For In An NPO Business Plan

February 20, 2023
5 Things Investors Look For In An NPO Business Plan

Having to present an NPO business plan to investors for funding can be an anxiety-fuelled task, especially if you’re going in blindly with no knowledge of what they are looking for.

There are key details that need to appear within your business plan to increase your chances of receiving that well-deserved funding.

Let’s take a look at the top 5 things investors look for in an NPO business plan.

Financial Scope And Trajectory

When it comes to persuading and impressing investors, you will need to familiarise yourself with your business’s financial metrics.

Investors are interested in strong financial performances and returns, so make sure to include a clear outline of your company’s financial achievements and future goals.

Always be transparent about your company’s financial viability and potential future gains. Familiarise yourself with typical finance inquiries from investors and be ready to answer their finance-related questions.

Investors also want to make sure you can pay the money back over the funded period. You need to ensure that your business can show financial growth, manage its financial responsibilities, and show a clear repayment strategy.

Familiarise yourself with successful associates in the non-profit space to learn from the best. This should help you understand what investors require in the financial aspect of your business plan.

Showcase Your Success

A good addition to any NPO business plan is to showcase your successes and achievements. Investors want hard-working candidates that can persevere and lead their organization to success.

There are numerous ways you can showcase your hard work, but you should aim for humility when doing it.

Investors thrive on company experience, so it is of paramount importance to showcase your previous work accomplishments in your business plan.

Additionally, if you have experience as a non-profit administrator or any other field related to non-profit organizations, then you should let them know. These are high-paying jobs for a Master of Social Work and if you have this level of education, then it’s key to add it to your existing business plan.

Lastly, familiarise yourself with the challenges start-ups face, and assure investors that they can easily be overcome.

A Detailed Description Of Programs And Services

Your NPO business plan can’t go without an outline of the services or products that you’ll be offering to consumers.

In this section, make sure that you detail everything that your business aims to offer. The more detailed, the better. Investors appreciate thorough detail in what your business will entail. If you think it holds importance, then be sure to add it in.

Don’t only talk about the services or products on offer. Include essential figures, such as the number of annual consumers and peak sales periods.

Lastly, you need to include a thorough description of how consumers or investors may benefit from donations and funding. Are there benefits associated with external donations? Do donators receive additional goods for the contributions?

How Funds Will Be Utilized

By now, investors are likely interested in giving you the money you need. However, before they can go ahead with the transaction, they will need to have a clear idea of how the money will be used.

First off, you need to outline the amount of funding you require for your NPO and the amount you aim to raise over the business period.

You need to prove to potential investors that your financial judgement is sound and that the money raised will be used for the growth of your business.

Make sure that you subtly mention that every dollar gained through the program will go solely towards uplifting and aiding supporters. Investors need to know that the money raised will not be wasted, but rather go to what it’s intended for.

Learn how mentors can help launch your entrepreneurial career and don’t be afraid to reach out for advice before making that final pitch to investors.

An Executive Summary

The most important component of any business plan is the executive summary.

Even though your executive summary is written up last, it’s the very first thing that readers will see when they open the document. Ensure that it’s intriguing enough to capture investors’ attention from the very first sentence.

An executive summary will showcase everything that your business is about, from what you do to what makes your business unique.

It should summarise all the previous points in a digestible way. It should leave them captivated and wanting to know more.

A weak executive summary will lose investors from the start and decrease your chances of being given any sort of financial funding.

Think about your executive summary as a landing page for a website. People are more likely to purchase from the website if it captures their interest. Triple-check your summary to make sure it’s up to standard.

If you have a successful pitch and your NPO business plan over succeeds, then make sure you learn how to create a business continuity plan. A well-thought-out business continuity plan will ensure that there is extended longevity to your initial proposed plan.

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